Wisconsin Adds $258 Million to Bolster Long-Term Care Services and Caregiving Workforce
Like many states, Wisconsin is facing a dramatic increase in the number of older adults who need long-term care services. For those with limited financial resources, the state, through the Medicaid program, pays for long-term care services through approved providers.
Governor Tony Evers (D-WI) announced a significant boost to Wisconsin's long-term care sector by directing over $250 million in taxpayer money to support home and community-based services (HCBS) and raise wages for direct care workers.
The Wisconsin Department of Health Services (DHS) will allocate $258 million from the American Rescue Plan Act (ARPA) funds to create and implement a minimum fee schedule for HCBS providers, a move that mirrors policies in neighboring Midwest states such as Illinois, Iowa, Minnesota, and Michigan.
The new minimum fee schedule will establish baseline payments that managed care organizations (MCOs) must provide to providers for various adult long-term care services. According to DHS, the affected Medicaid programs include Family Care, Family Care Partnership, and Program of All-Inclusive Care for the Elderly (PACE), which serve nearly 57,000 older adults and adults with disabilities.
DHS estimates that this funding and the creation of the minimum fee schedule will result in a 15% rate increase for most supportive home care services and a 40.5% increase for most residential facility services.
Bolster Healthcare Workers
"I declared 2024 the Year of the Worker in Wisconsin to continue focusing on our efforts to address our state's generational workforce challenges, chief among them efforts to bolster our healthcare and direct care workforces," Gov. Evers stated.
Our healthcare workers have faced significant challenges these past few years, and these investments will go a long way toward helping make sure workers receive the support and fair compensation they deserve.
DHS Secretary Kirsten Johnson emphasized the critical nature of this investment.
It's a critical investment, making for a stronger workforce able to offer quality care and services, and ensuring people are able to stay in their homes and communities longer.
The minimum fee schedule, which will take effect on October 1, 2024, aims to stabilize and maintain revenue for providers and MCOs.
The allocation of $258 million from ARPA funds is part of a broader effort to enhance Wisconsin's HCBS programs. DHS estimates a total of $350 million is available from ARPA HCBS funding to address direct care workforce issues and develop strategies to delay the need for long-term care.
The minimum rates will apply to services provided by adult family homes, community-based residential facilities, residential apartment complexes, supportive home care agencies, and self-directed supportive home care.
According to the governor, this initiative marks a pivotal step in supporting Wisconsin's most vulnerable populations by ensuring that those who provide critical care services are compensated fairly and adequately supported in their roles.
Care Costs in Wisconsin Higher
Wisconsin already has the highest long-term care costs in the Midwest. According to a review by LTC NEWS, the costs for home care, assisted living, and nursing homes in Wisconsin are higher than those in neighboring states, including Illinois, Michigan, Minnesota, Iowa, Missouri, and Indiana.
This increase makes the financial burden for long-term care services in Wisconsin more significant compared to other areas in the region for anyone other than those who qualify for Medicaid long-term care benefits.
Experts predict that higher labor costs will impact both Medicaid and private pay providers, leading to increased long-term care costs for everyone in Wisconsin. This rise in expenses is expected to affect all forms of care, including home care, assisted living, and nursing homes, thereby raising the overall cost of long-term care services across the state.
Labor Shortages in Long-Term Care
Wisconsin is grappling with a severe shortage of long-term care caregivers, a crisis that is worsening and threatening the quality of care for an aging population.
A 2022 report by LeadingAge Wisconsin revealed a staggering 27.8% vacancy rate for caregiver positions, a significant increase from 23.8% in 2020.
The shortage is particularly acute among Certified Nursing Assistants (CNAs) and direct care workers, with vacancy rates exceeding 28%. This staffing crisis has led to a decline in service quality, with residents experiencing delayed or denied care.
Paying for Long-Term Care
For those who cannot qualify for Medicaid, the burden of long-term care costs falls primarily on the individual, or loved ones may become caregivers. Those with LTC insurance can pay for care with the benefits of their policy.
Health insurance, including Medicare and supplements, only covers short-term skilled services. Long-Term Care Insurance can cover all types of care services, from home care to nursing homes.
Remember, without an LTC policy, families are responsible for paying long-term care costs out of pocket, depleting their income and assets. Otherwise, family members often must become caregivers.
Planning and LTC Partnership
Many experts recommend considering Long-Term Care Insurance for those with savings to protect. Generally, an LTC policy would be added to a retirement plan prior to retirement, although those in their 60s and 70s can find affordable options depending on their health.
With an LTC policy, you can protect income and assets from the rising costs of long-term care services. Partnership Long-Term Care Insurance policies are available in most states, including Wisconsin, providing additional dollar-for-dollar asset protection.
Partnership LTC Insurance allows you to shelter part of your estate and still qualify for Medicaid benefits if you were to exhaust all the benefits from your policy. Unfortunately, many financial advisors are unaware of the partnership program.
Advance planning will protect savings and reduce the stress and burden that long-term care often places on your family. Medicaid benefits will be available for those with limited resources to pay for care services.